Personal Retirement Planning Warrington

When it comes to personal retirement planning, getting started early is key.  In light of the changes in the July 2015 budget, there are now more risks than ever to your long term income.  Tax, investment risk, living longer and the opportunity to pass your retirement savings on to family members including grandchildren.  Great advice starts with your plans for later life.  That’s what we specialise in at Assured Wealth and Estate Planning.  We ask about your goals then work your assets around making this happen for you.

Warrington Retirement Planning

Retirement income can be generated in many different ways.  Most people think about the state pension, but there are lots more ways to fund income in retirement.  Here we look at personal retirement planning products and the tax implications of them for you in later life.

Personal retirement planning

Personal retirement planning

State Pension

  • What is a state pension?

    The state pension is paid directly by the UK government and currently goes into payment from age 65 onwards. However, this eligible age figure is increasing each year in line with increased life expectancy.

  • What are the tax features of the state pension?

    The income from the state pension is taxable as income and is paid to you gross. Tax payable is assessed via self-assessment each year to confirm any tax owed. 

  • State Pension Features

    You can delay the start of your state pension by a year and receive up to 10% extra each year. Use the State Pension calculator to see how much you may get. Click State pension to calculate your benefits now.  

Annuity

  • What is an annuity?
    An annuity is available to be purchased from age 55 from pension savings or a lump sum.
  • What are the tax features of an annuity?

    Taxed at source at basic rate, as income. A non-tax payer can claim back the tax paid and a high rate tax payer will have to complete a self-assessment each year to confirm any tax owed.

  • Annuity Features
    There are lots of types of annuities available to help fund your income needs in retirement. Get help and advice here: My Retirement Income

Final Salary Pension

  • What is a final salary pension?
    Paid by an employer at the schemes normal retirement age. You are able to take benefits at age 55, but may well face a reduction each year for taking benefits early.
  • What are the tax features of a final salary pension?

    Taxed at source at basic rate, as income. A non-tax payer can claim back the tax paid and a high rate tax payer will have to complete a self-assessment each year to confirm any tax owed.

  • Final Salary Pension Features
    A spouse or civil partner may be entitled to these benefits on your death before or after retirement. Ensure you have completed a scheme nomination form “expression of wishes” letter.

Personal Pension

  • What is a personal pension?
    This could be in lots of different product names, such as a retirement annuity contract, SIPP, section 32, personal pension, money purchase plan, SERPS etc.
  • What are the tax features of a personal pension?

    From April 6th 2015 you are able to take the benefits as cash. Take the entire pot if you wish, nut you will be faced with income tax on them, so planning to reduce this is key.

  • Personal Pension Features
    Upon your death, this pot falls into your estate, so ensure you have a valid will and an expression of wishes form to nominate who you wish to benefit from the plan. The tax situation is different for different beneficiaries on your death, so take advice.

Buy To Let Property

  • What is a Buy to Let Pension Plan?
    This generates taxable income in the hands of the owner and is subject to market conditions and void periods. Costs of maintenance and upgrades also reduce the income that can be taken each year.
  • What are the tax features of a Buy to Let Pension Plan?

    Taxed via self-assessment each year. This can be held in a limited company to reduce the tax burden, but tax advice on your personal circumstances prior to doing this. Capital gains tax is payable on all gains made on the sale of UK property.

  • Buy To Let Pension Plan Featuares
    This can be a very good way of managing your income with some definable rental income. Caution has to be taken when deciding ownership and who will ultimately benefit from these properties on your death.
There are even more tax efficient methods of generating a retirement income for your later years.  Tax and how you own the asset should now be your key decisions before embarking on which one to use.

Personal Retirement Planning Advice

Speak to our Warrington IFA team at Assured Wealth and Estate planning today on: 01925 396122.

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